SUPERNEWS

Crypto

Bitcoin Dips Below $60K Pre-Halving Amid Market Jitters

Bitcoin falls below $60K ahead of halving, amid market volatility and geopolitical tensions, challenging its bullish outlook.

By Bill Bullington

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4/17, 13:02 EDT
Bitcoin / U.S. dollar
Coinbase Global, Inc.
Marathon Digital Holdings, Inc.
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Key Takeaway

  • Bitcoin falls below $60,000 for the first time in over a month amid pre-halving volatility and broader market concerns.
  • Crypto-related stocks like MicroStrategy, Coinbase, and Marathon Digital also see declines in anticipation of the halving event.
  • Despite recent sell-offs and risk aversion due to geopolitical tensions, long-term outlook for Bitcoin remains bullish with expectations of a price increase post-halving.

Bitcoin Dips Below $60K

Bitcoin experienced a significant drop below the $60,000 mark for the first time in over a month, signaling increased market volatility ahead of a crucial software update on its blockchain. This update, known as the halving, is anticipated to be bullish for the cryptocurrency. However, Bitcoin's price fell as much as 5% to $59,888, reflecting a roughly 18% decrease from its record high of $73,797 on March 14. The broader crypto market, including Ether, Solana, and Dogecoin, also saw declines, alongside crypto-related stocks such as MicroStrategy, Coinbase, and Marathon Digital.

Halving Event and Market Sentiment

The upcoming halving event, which reduces the supply of new tokens, has historically been a positive catalyst for Bitcoin's price. Yet, the current market downturn suggests concerns that the halving's impact may already be priced in, amidst a risk-off investment climate exacerbated by geopolitical tensions in the Middle East. Nathanaël Cohen, co-founder of INDIGO Fund, highlighted the market's cautious stance, noting, "People are looking to derisk as it remains to be seen if the halving will be a market moving event or a non-event overshadowed by the ETF." This sentiment is further stressed by the recent liquidation of approximately $780 million worth of bullish crypto wagers, and the market's reaction to geopolitical events, including Iran's attacks against Israel.

Market Outlook Amidst Geopolitical Tensions

The geopolitical tensions and the potential for higher oil prices pose additional risks to both cryptocurrencies and traditional stocks. These factors could prompt the Federal Reserve to maintain higher interest rates, impacting the appeal of risk-sensitive assets. Despite the recent sell-off, which has threatened Bitcoin's technical market position, some analysts remain optimistic about its long-term prospects. Ravi Doshi, head of markets at FalconX, mentioned, "FalconX continues to see longer dated call buying across our derivatives desk as our clients are expecting higher prices in the second half of the year."

Street Views

  • Nathanaël Cohen, INDIGO Fund (Neutral on Bitcoin):

    "People are looking to derisk as it remains to be seen if the halving will be a market moving event or a non-event overshadowed by the ETF. There is an additional macro factor putting more pressure on risk assets (the Middle East tensions)."

  • Ravi Doshi, FalconX (Bullish on Bitcoin):

    "FalconX continues to see longer dated call buying across our derivatives desk as our clients are expecting higher prices in the second half of the year."